Is Novanta Stock a Buy or Sell After Its CEO Dumped 7,500 Shares Worth $1.1 Million?

Matthijs Glastra, Chief Executive Officer of Novanta (NOVT +2.57%), reported a direct open-market sale of 7,500 common shares for a transaction value of ~$1.09 million on Feb. 10, 2026, according to a SEC Form 4 filing.

Transaction summary

Transaction value based on SEC Form 4 reported price ($145.04); post-transaction value based on Feb. 10, 2026 market close ($145.05).

Key questions

• How does this sale compare with the CEO’s historical trading activity?
  This 7,500-share sale matches the largest trade size in the CEO’s 10 sell-only transactions since February 2023, and is above the recent-period median of 6,500 shares per transaction.
• What is the impact on direct versus indirect ownership?
  Direct holdings decreased to 57,367 shares; indirect holdings via the trust remain unchanged at 54,382 shares.
• Was the sale executed under a prearranged trading plan?
  Yes, the transaction was carried out under a pre-established Rule 10b5-1 plan, indicating routine liquidity management.
• How does the sale align with remaining ownership capacity?
  With direct holdings now at 57,367 shares, the reduced trade size in recent filings is explained by a shrinking available share base rather than a change in disposition strategy.

Company overview

Note: 1-year price change calculated as of Feb. 10, 2026.

Company snapshot

• Novanta offers photonics, vision, and precision motion components and subsystems, with key products including laser scanning systems, medical visualization technologies, and motion control solutions.
• The company generates revenue by designing, manufacturing, and selling proprietary hardware and integrated solutions to original equipment manufacturers (OEMs) in the medical and industrial sectors.
• Primary customers are OEMs serving medical device, life sciences, and advanced industrial automation markets worldwide.

Novanta operates at scale as a specialized provider of advanced photonics, vision, and motion technologies, with a focus on high-growth medical and industrial applications. The company leverages proprietary technology platforms and a diversified brand portfolio to address complex OEM requirements. Its strategic emphasis on innovation and integration provides a competitive edge in precision-driven markets.

What this transaction means for investors

The sale of 7,500 Novanta shares by its CEO Matthijs Glastra is not a cause for concern for a few reasons. The transaction was part of Mr. Glastra’s Rule 10b5-1 trading plan, which he adopted in September of 2025. A Rule 10b5-1 trading plan is often implemented by insiders to avoid accusations of making trades based on insider information.

Moreover, after his Feb. 10 sale, Mr. Glastra retained an additional 57,367 directly-held shares as well as another 54,382 shares in a trust, indicating he is not in a rush to dispose of his holdings.

Mr. Glastra’s sale came at a time when Novanta shares were soaring. The stock eventually hit a 52-week high of $150.18 before falling. The price increase was due to the company’s excellent business performance.

In the fourth quarter, revenue rose 9% year over year to $258 million, exceeding expectations. This helped Novanta end 2025 with a 3% year-over-year sales increase to $981 million.

The company expects revenue to continue growing in 2026. It forecasted sales to exceed $1 billion this year. Given Novanta’s success, it’s no wonder the stock is up.

However, its price-to-earnings ratio of 91 hovers around a high for the past year. This means its shares are pricey. Consequently, now is a good time for shareholders to sell, but investors who want to buy should wait until the stock price drops further.